Stamford Tyres

[potatolover]

Who is likely to take over?

Sumitomo Rubber Industry? very unlikely now... Yen has depreciated a lot and will continue to depreciate by at least 10 to 20%...

should be rumours that someone is buying over or being taken private

Very Vested

[Stockerman]

very skeptical of company who tried to "play up" the price of their counter in the hope that the buyer will pay more...
But the fact remains that Yen has weakened tremendously and there is a lot more room for further depreciation.

[mkmk]

http://infopub.sgx.com/FileOpen/Press_Re...eID=260923

Stamford Tyres expands presence in Middle East with appointment of official dealer for Sumo Firenza in UAE
- Appointment of Al Habtoor Motors to increase Sumo Firenza’s brand equity and sales across UAE
- Al Habtoor Motors’ established portfolio includes exclusive distributorships for Mitsubishi, Bentley, McLaren, Bugatti, TEMSA, JAC, Fuso and Cherry in UAE
- Sumo Firenza, a premium value tyre brand by Stamford Tyres, to offer quality, value and reliability to UAE customers

(not vested)

[greengiraffe]

Stamford Tyres opens $25m facility

High-tech centre will boost efficiency, storage capacity
Published on Apr 26, 2014 1:14 AM


Mr Wee Kok Wah and his wife Dawn (centre) with long-serving staff at the ribbon- cutting ceremony for the new centre in Jurong. -- PHOTO: STAMFORD TYRES CORPORATION

By Tee Zhuo

STAMFORD Tyres Corporation opened a new commercial centre and warehouse yesterday that doubles its

storage capacity while boosting efficiency through the use of high-tech tracking systems.

The $25 million facility - the firm's second in Jurong - has 2.3ha of floor space and employs 85 people, about half of whom are locals.

It can store 600,000 tyres, increasing total capacity across both warehouses to one million.

The Singapore-listed firm said in a statement that the centre will support its "expanding total tyre management businesses in South-east Asia".

Stamford president Wee Kok Wah said the previous warehouse offered "limited storage capabilities". "The redeveloped warehouse optimises land use... to support the international proprietary brand tyre and wheel distribution operations," he added.

The centre has an 18m-high ceiling and Singapore's tallest racking for tyres. A barcode system cuts by half the time needed to process inventory.

A truck servicing facility with six service bays offers "full life-cycle" services in one place, including retreading and wheel balancing.

Large firms such as port operator PSA and public transport operators SMRT and SBS Transit are already among the centre's customers.

The facility marks a shift back to South-east Asia for Stamford Tyres. It was partially funded by $12 million in net gains from the 2012 disposal of its stake in SRITP, a joint-venture Chinese tyre distribution company.

Mr Wee told The Straits Times yesterday: "We chose to take the money and put it back in South-east Asia, our home." Driving organic growth in the firm's operations across the region is the focus for now, he added. Thailand, Indonesia, Singapore and Malaysia account for about 80 per cent of the group's business today.

Stamford Tyres was founded in the 1930s by Mr Wee's father, the late Wee Boon Kwee. It now has a distribution presence in 13 countries across the Asia-Pacific region and Africa, with more than 1,200 employees. In addition to distributing major international tyre brands including Falken and Dunlop, Stamford also sells its own brands such as Sumo Firenza and Sumo Tire globally.

It reported a net profit of $838,000 for the three months to Jan 31, down 63 per cent from $2.2 million for the same period a year ago. This was mainly attributed to an unrealised loss of $1.6 million in "doubtful receivables" due to collection issues the firm faced in Indonesia.

Stamford Tyres shares closed flat at 37 cents on Thursday, the last day the stock traded.

teezhuo@sph.com.sg

[CityFarmer]

Stamford Tyres’ 2Q earnings falls 82.4% to $0.9 million

SINGAPORE (Dec 8): Stamford Tyres, one of the largest independent tyre and wheel distributors in South East Asia, recorded a 82.4% fall in earnings for the 2QFY15 ended Oct to $0.9 million from $4.9 million a year ago in 2QFY14.
...
http://www.theedgemarkets.com/sg/article...09-million

[cyclone]

RIP Mr Chua Kim Yeow

Stamford Tyres Corporation Limited wishes to announce with deep regret, the passing of Mr Chua Kim Yeow, the Company's former Chairman and Senior Advisor, aged 91, on 21 August 2016.

The late Mr Chua served as Chairman of the Board from 1991 to 1994. On retiring as Chairman of the then Stock Exchange of Singapore Ltd, he was re-appointed as Independent Director and Non-Executive Chairman of the Company in 2000. He retired from all posts in August 2012 but stayed on as our Senior Advisor until August 2016.

The Board and Management of Stamford Tyres would like to extend their deepest condolences to the family of the late Mr Chua and express their heartfelt appreciation for Mr Chua's invaluable counsel and guidance to the Stamford Tyres Group.

[cyclone]

Today's closing price : 0.32 per share.

Financial Results for the Financial Year ended 30 April 2017 ("FY17")

Highlights :
1. The Group recorded revenue of $235.8 million in FY17 which was 1.7 per cent lower than FY16 at $239.9 million
2. Gross profit margin increased from 24.7 per cent in FY16 to 26.2 per cent in FY17
3. Net profit increased to $8.1 million for FY17 compared to $2.6 million for FY16
4. The cash and cash equivalents of the Group stood at $21.7 million as at 30 April 2017 compared to $17.4 million as at 30 April 2016
5. On a diluted basis, the Group’s earnings per ordinary share increased from 1.10 cents for FY16 to 3.44 cents for FY17
6. As at 30 April 2017, the Group’s net asset value per ordinary share stood at 52.59 cents, compared to 49.88 cents as at 30 April 2016
7. Declared 1.5 cent per share dividend for FY17.

More details in :
1. http://infopub.sgx.com/FileOpen/STCL_FY2...eID=459256
2. http://infopub.sgx.com/FileOpen/STCL_FY2...eID=459257

[cyclone]

Financial Result for the Financial Year Ended 30 April 2018 ("FY2018")

Highlights :
1. The Group recorded revenue of $242.4 million which was 2.8 per cent higher than FY17 at $235.8 million
2. Gross profit margin decreased from 26.2 per cent in FY17 to 25.0 per cent in FY18, mainly due to higher cost of sales in tyres and higher cost of wheel production
3. Total operating expenses increased by 5.4 per cent to $59.4 million in FY18 compared to $56.4 million in FY17
4. Net profit decreased 36% to $5.2 million for FY18 compared to $8.1 million for FY17
5. The cash and cash equivalents of the Group stood at $21.9 million as at 30 April 2018 compared to $21.7 million as 30 April 2017
6. The Group’s earnings per ordinary share decreased from 3.44 cents for FY17 to 2.20 cents for FY18
7. As at 30 April 2018, the Group’s NAV per ordinary share stood at 53.81 cents, compared to 52.59 cents as at 30 April 2017
8. Declared 1 cent per share dividend for FY18.

More details in :
1. http://infopub.sgx.com/FileOpen/STCL_FY2...eID=511865
2. http://infopub.sgx.com/FileOpen/STCL_FY2...eID=511866

Stamford Tyres Corporation today closed at SGD0.330.

[cyclone]

Profit Guidance for the second quarter and half year ended 31 October 2019

The Board of Directors of Stamford Tyres Corporation Limited announced that following a preliminary review of the draft unaudited consolidated financial results of the Group for the second quarter and half year ended 31 October 2019 (“2Q2020” and “1H2020”), the Group is expected to record a net loss for 2Q2020 and 1H2020.

The losses were mainly due to lower revenue arising from increased competition and oversupply in the tyre market as well as a one-time expense relating to the closure of a loss-making operation in Australia.

The Group is in the process of finalising its financial results for 2Q2020 and 1H2020 and further details of the Group’s financial performance will be disclosed when the Company announces its financial results for 2Q2020 and 1H2020 on or before 15 December 2019.

[weijian]

Financial Result for the Financial Year Ended 30 April 2018 ("FY2018")

Highlights :
1. The Group recorded revenue of $242.4 million which was 2.8 per cent higher than FY17 at $235.8 million
2. Gross profit margin decreased from 26.2 per cent in FY17 to 25.0 per cent in FY18, mainly due to higher cost of sales in tyres and higher cost of wheel production
3. Total operating expenses increased by 5.4 per cent to $59.4 million in FY18 compared to $56.4 million in FY17
4. Net profit decreased 36% to $5.2 million for FY18 compared to $8.1 million for FY17
5. The cash and cash equivalents of the Group stood at $21.9 million as at 30 April 2018 compared to $21.7 million as 30 April 2017
6. The Group’s earnings per ordinary share decreased from 3.44 cents for FY17 to 2.20 cents for FY18
7. As at 30 April 2018, the Group’s NAV per ordinary share stood at 53.81 cents, compared to 52.59 cents as at 30 April 2017
8. Declared 1 cent per share dividend for FY18.

More details in :
1. http://infopub.sgx.com/FileOpen/STCL_FY2...eID=511865
2. http://infopub.sgx.com/FileOpen/STCL_FY2...eID=511866

Stamford Tyres Corporation today closed at SGD0.330.

Time for another quick look, 6 years since FY18. Since this is a distributor, will just concentrate on its GPM and capital efficiency here.

FY24 (,000)

Revenue=190,269
GPM=29%
NP (exclude property disposal gain)=4,000
NPM=4000/190269=2.1%
ROIC (NP/(equity+debt-cash))=4000/(111,963+60,000-32500)~2.9%
Working Capital~82,000
Revenue/Working Capital=190,269/82,000=2.3x (1 dollar of working capital produces 2.3dollar of revenue)
Inventory turnover~182days
Receivables turnover~65days
Payables turnover~70days
CCC (cash conversion cycle) = 182+65-70~177days

FY18 (,000)
Revenue=247,855
GPM=26.5%
NP=5,193
NPM=5,193/247,855=2.1%
ROIC (NP/(equity+debt-cash))= 5,193/(126,779+89000-21900)~2.2%
Working Capital~112,000
Revenue/Working Capital=247,855/112,000=2.2x (1 dollar of working capital produces 2.2dollar of revenue)
Inventory turnover~176days
Receivables turnover~95days
Payables turnover~86days
CCC (cash conversion cycle) = 176+95-86~185days

------------------------------

Notes:

- Revenue has dropped ~15% over the last 6 years but there is 250bps improvement in the GPM, which may explain why NPM=2.1% is roughly maintained in FY24 when compared to FY23.

- Company did an "inventory rationalization" exercise in FY24 and managed to improve its working capital, ROIC and inventory turnover. Despite been smaller in terms of revenue, the Wees have improved their capital efficiency.

- Normally when inventory rationalization is done, write-offs happen and tyres having 5 year lifetime does not help at all. But no write-offs was done in FY24, although curiously, some write-offs were done in FY23 and it coincides with expected credit loss write-backs. This kind of "management" is probably expected for a CEO who was once a CFO for 12years at the Group, I suppose.